Transitional provisions for vat Set off in case of construction of residential complex service

[Subodh Modak]

Under maharashtra value added tax developers and builders were not allowed any Set off. The incomplete work is carried forward as work in progress. Do they will be entitled for credit of vat amount paid in last 12 months? And the Central exise amount paid separately or otherwise ? Please clarify

AI Summary

Exploring VAT Set-Off Rules for Residential Construction Under GST: TRANS-1 Credit Limitations and Legal Options A discussion on transitional provisions for VAT set-off in the context of the construction of residential complexes under the Goods and Services Tax (GST) regime in Maharashtra. A participant inquires about the possibility of claiming VAT credit for the past 12 months and the treatment of Central Excise amounts. Respondents clarify that without a closing balance of input credit in VAT returns, credit cannot be carried forward via TRANS-1. Legal recourse may be necessary, and suggestions can be submitted to government authorities. The Maharashtra GST Act restricts credit for units not entitled under specific rules, while the CGST Act has different provisions for CENVAT credit.